The state provides an income tax credit for the qualified purchase of a natural gas heavy duty vehicle which is defined in 59-7-618 and 59-10-1033 UCA as a commercial category 7 or 8 vehicle that has never been titled or registered. The credit is limited to an aggregate annual amount of $500,000.
The credit for tax year 2015, 2016, and 2017 is $25,000 per qualified purchase; the credit for tax year 2018 is $20,000 per qualified purchase; the credit for tax year 2019 is $18,000 per qualified purchase; and the credit for tax year 2020 is $15,000 per qualified purchase.
Taxpayers are required to complete the Application to Reserve a Heavy Duty Vehicle Tax Credit to reserve a qualified heavy duty vehicle tax credit. The Division will notify the taxpayer of the status of their application. If the application is approved, the notification will indicate the date by which the taxpayer will need to provide the required documentation found below. The successful applicants will have 180 calendar days after the approval of the application to provide the following items or the tax credit will no longer be reserved for the taxpayer:
- a copy of the motor vehicle’s window sticker, which includes its Vehicle Identification Number (VIN), or equivalent manufacturer’s documentation showing that the heavy duty vehicle is an Original Equipment Manufacturer (OEM ) natural gas vehicle, 100% electric, or a hydrogen-electric vehicle; or
- a signed statement by either an Automotive Service Excellence (ASE)-certified technician or Canadian Standards Association (CSA) America CNG Fuel System Inspector that includes the VIN, the technician’s ASE or CSA America certification number, and states that the heavy duty vehicle is an OEM natural gas vehicle;
- an original or copy of the purchase order, customer invoice, or receipt that includes:
- the name of the qualified taxpayer seeking the credit,
- the name of the seller of the heavy duty vehicle,
- the VIN,
- purchase date, and
- price of the heavy duty vehicle;
- a copy of the current Utah vehicle registration in the name of the qualified taxpayer seeking the credit; and
- the certification required under Subsection 59-7-618(2)(b) and 59-10-1033(2)(b).
Please contact Mat Carlile at (801) 536-4116.